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How To Front Run The Next Big Takeover For 40%+ Gains

Brett Owens

A big part of our double-digit gain on VR hinged on its price-to-book-value ratio, which we watched closely, striking at two points when the stock had dropped to a level even with book value—or what Validus’s assets would be worth if it were to be broken up and sold off. Validus has been great at leveraging its float and handing the spoils back to shareholders: between its founding in 2005 and my 2016 buy call, VR had put $3.57 billion in investors’ pockets in the form of “regular” dividends, special dividends and share buybacks.